I am a Certified Divorce Financial Analyst™ and the author of the Amazon best-selling books, Divorce: Think Financially, Not Emotionally - What Women Need To Know About Securing Their Financial Future Before, During, And After Divorce, Volumes I & II. My books are available on my website ThinkFinancially.com. I am also the founder of Bedrock Divorce Advisors, LLC, a divorce financial advisory firm that works exclusively with women throughout the United States, and the creator of ThinkFinancially.com, a website created to educate, empower and support women before, during and after divorce. In addition to my weekly blog for Forbes.com, I also contribute articles regularly to The Huffington Post, DailyWorth, More.com, Lawyers.com and many others. I have been extensively interviewed about the financial aspects of divorce for women by CBS and FOX Television News and such prestigious publications as The Wall Street Journal, Dow Jones, The Miami Herald, Smart Money, Consumer Reports, The Christian Science Monitor, and many others. I earned my BA degree in psychology from Columbia University and studied law at Pace University School of Law before becoming a divorce financial advisor. All articles/blog posts are for informational purposes only, and do not constitute legal advice. If you require legal advice, retain a lawyer licensed in your jurisdiction. The opinions expressed are solely those of the author, who is not an attorney. Landers@BedrockDivorce.com

Three of the Most Frequently Asked Questions About Health Insurance, Life Insurance and Social Security After Divorce

For most women, divorce is stressful, emotionally-trying and confusing. The future can seem uncertain, particularly with regard to financial portfolios and insurance policies, most of which seem to “run on auto-pilot” during the marriage.

If you’re wondering what will happen to your health insurance policy, your life insurance beneficiaries and your social security account after you divorce, let me offer some guidance. While each divorce is unique and deserving of the attention of a qualified divorce team, here are some general answers to the three questions my clients ask most frequently about health insurance, life insurance and social security.

Can I stay on my ex’s health insurance plan after we divorce?

The laws regarding health insurance are straightforward, and the answer to this question can be summed up in a single word: “No.” Once divorced, you cannot stay on your ex’s health insurance –but your children can and probably should (although who will pay the premiums for them could be a topic of discussion).

Once the divorce is finalized, you (the non-employee spouse) can qualify for COBRA coverage, but remember: COBRA is temporary and lasts only up to 36 months. If you’re divorcing, my advice would be to get your own health insurance as soon as possible, because if you develop a condition while on COBRA, a new insurance plan may look at that as a pre-existing condition and either not insure you or only do so with much higher premiums. (Of course, the Supreme Court is now scrutinizing Obamacare, so stay tuned. The way health insurance companies view pre-existing conditions may change.)

Maintaining health insurance coverage is a major concern for many divorcing couples, and in fact, it’s one of the main reasons why some couples now opt for a legal separation instead of divorce. But, if you do decide to legally separate rather than divorce, please tread carefully. Some health insurance companies view a legal separation as essentially the equivalent of divorce, and so they will not continue coverage for a separated spouse.

Here’s the bottom-line: Do not take this matter lightly. Be sure to check with your health plan provider regarding their policies and restrictions. Health insurance companies have stringent requirements for when and how they must be notified of your divorce, and failure to do so could constitute insurance fraud. Your attorney can help your understand the laws as they apply to your specific case.

Can my husband remove me as beneficiary of his life insurance policy?

There are two specific timeframes when there is a simple one-word answer to this question. Yes, your husband certainly can remove you as beneficiary of his life insurance policy IF:

the divorce action has not yet commenced, or

your divorce has been finalized.

However, if you are in the process of getting a divorce, the answer is not so straightforward. For example, many states impose an ATRO [Automatic Temporary Restraining Order] on couples who are in the process of getting a divorce. This ATRO prohibits either party from changing beneficiaries, modifying accounts, selling or mortgaging property, etc., without the consent of the other party and/or the court.

Dig a little deeper, and you’ll see that the issue of life insurance policies can become even more complex once the discussion broadens to include factors such as alimony and child support. Why? Because life insurance policies are often used to secure alimony and child support payments.

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Just to add a clarification about the life insurance beneficiary change restriction: In states where an ATRO prohibits the modification of beneficiaries, the insurance company needs to be notified of the divorce action. The courts do not do this!

People should never forget that real health depends how well you take care of yourself and not what health insurance you carry but I agree health insurance is important for every one. Search “Penny Health” or online for dollar a day insurance plans.

Health insurance,life insurance and Social Security are an essential part of a balance sheet and need to be considered in a divorce.Your article so accurately and informatively touches on these important issues . Other topics which are often forgotten when aggregating financial information for a divorce include student loans, trusts, annuities, financial responsibilities from a prior marriage, commissions and fringe benefits from work related income, royalties, pensions, air miles/credit card points and can be equally important to remember in the division of assets and liabilities.

Since the father of my children was sort of penniless when we got married in 1985, I bought life insurance policies on both of our lives, assuming our marriage was supposed to last. It didn’t, as he fell in love with one of my PhD students who had suggested he could take half of my property upon divorce and marry her. Now the policy on my life expires, as I am 60+, and he turns out to have assured he is the beneficiary, as opposed to our two children, who we had agreed (I thought) would be beneficiaries of both policies upon the divorce. I will not agree to issue a attestation of being alive, as a condition to pay out the policy, unless he makes our adult children beneficiaries. Oh yes, let’s add that he has never paid a penny of alimony to me or the children, and had them camp out in tents when they’d visit him. He had just kept to a part time job sufficient to keep him and his expenses covered over all these years – and he remarried some hippy with two kids a few years ago, as she took so well care of him during his battle with throat cancer… Who is right?

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